The Perfect Storm

Around the country, local and regional associations of Realtors have seen a decline in their membership. Here in the Pacific Northwest, Whatcom County specifically, we Realtors were once almost 900 strong during the real estate pinnacle of '04 to '06. Almost sadly, only just over 750 agents remain, with a possibility that the number could fall to under 700 by year's end. I do not write this with a heavy heart; this is not gloomy news. In fact, it is a substantial imperative. The industry needs this healthy distillation because only the true professionals will weather the storm.

Part-timers and less skilled agents will likely progress to other lines of work. The punch line? Clients now have at their disposal a concentrated group of seasoned, dedicated, and loyal agents to assist them in buying and selling real estate. The objective? Be a part of this small club of proficient Realtors.

The market's message is "stick it out". If we as agents can withstand the winds of difficult economics and an industry hit hard with financial damage, we can restore happiness and much needed faith into our clients. Who do we need to serve the most (besides our obvious 'A' clients)? First-time home buyers. With our keen knowledge of the market coupled with the help of the economic stimulus plan, first-timers will have the necessary confidence to hop off the fence, and buy.

First-time home purchasers need to cease procrastinating, and end their fruitless wait for lowering interest rates. Fluctuating currently, the rates are only expected to rise ultimately. Some speculate that this is in order to pay for the high cost of the economic stimulus plan. Moreover, it is advantageous to buy now. Once interest rates increase, the first-time home buyer will lose purchasing power. It is our job as discerning Realtors to point out to our first-time buyers that they need this leverage.

I will not say we have a booming market here in Whatcom County, but it has remained successful. We still have market strength. Our property price adjustments have been moderate as we have managed to maintain a mild equilibrium. This is due partially to our "think and buy local" philosophy, which has allowed many small business to flourish. Long standing loyalty by Bellinghamsters to buy local has contributed to a healthier market. Low unemployment in Whatcom County has certainly impacted our local economy positively. So we have not seen the high stress to the local economy that other regions have.

While interest rates are in a state of flux, we look to house prices. House prices have fallen and are still falling. We have not yet seen the bottom - another factor to persuade your first-time home buyer. Low interest rates that may increase, falling house prices, and tax incentives... separately not that exciting, but altogether, a perfect storm for a first-time home purchase.

Once the tide changes, and our economy begins to heal, prime buying conditions like what we see before us will not be in the forecast for a long, long time. Encourage your first-timers to purchase now before they are in a position to regret not doing so, because now you are a part of an elite group of agents left over after a nuclear fallout for our industry. Who will your clients turn to? Be there for them. This is their time of need. And you have their undivided attention.

Thank you for reading!